Key Minerals in Africa: Fault Lines — Tunisia's Phosphate Industry Revival Confronts Old Gafsa Troubles

Amid strong global demand for fertilizers and increasing attention on phosphates in certain battery technologies, Tunisia is striving to revive its phosphate industry, long in decline due to insufficient investment and social unrest — but this endeavor is far from straightforward.

Workers at the Gafsa Phosphate Company (CPG) have launched strikes at the M'diria and Metlaoui mining sites. The strike has now spread to Redjef and Mourares, starkly reminding observers that despite recent signs of rebound, Tunisia’s phosphate sector still faces deeply entrenched structural challenges.

Phosphates, a mineral primarily used in fertilizers, are playing an increasingly vital role in chemicals required for green batteries and energy transition. In Tunisia, the main producer is state-owned CPG. This strike was initiated by some CPG employees at a time when the company and the broader Tunisian phosphate industry are showing promising signs after years of decline.

Fleeting Spark or Genuine Recovery?

According to data presented by CPG General Manager Abdelkader Amidi, phosphate output will reach 3.9 million tons in 2025, up from 3.04 million tons in 2024. Although production remains far below the 8.2 million tons peak achieved in 2010, output has been gradually recovering since 2023.

The authorities have launched a five-year revival plan aimed at raising national phosphate production to 14 million tons by 2030. At the core of this strategy is the modernization of mining, processing, and transportation infrastructure, particularly in the Gabès and M’diria regions.

To fund railway construction, parliament approved a loan of 16 million Kuwaiti dinars (approximately $52 million) from the Arab Fund for Economic and Social Development in April. This broader renovation plan is expected to cost around 500 million Tunisian dinars (about $171 million), with funding commitments already secured from the Saudi Fund for Development and the Kuwaiti Arab Fund for Economic Development in 2024 and 2025, respectively.

Private investors from Tunisia and abroad are also entering the phosphate exploration space, eager to eventually join CPG in production.

This includes Australian company PhosCo, which announced in May 2026 the discovery of two new deposits within its Gasaat phosphate project, increasing the project’s estimated resource base to 166.6 million tons with a 20.6% P₂O₅ grade.

Enduring Structural Barriers

Yet these developments have not eliminated long-standing industry challenges. Amidi acknowledged in a speech before Tunisia’s parliament that loans raised in recent years have failed to deliver expected results. He cited aging equipment, prolonged underinvestment since 2014, and a lack of coherent plans for updating the company’s rail freight fleet as key causes of the current predicament.

Social unrest in the CPG region remains another major challenge. A large-scale uprising erupted at the mine site as early as 2008, driven by demands for social justice, local employment, and fairer distribution of mining revenues. This movement was suppressed by the Ben Ali regime and is widely regarded as one of the precursors to the 2011 Tunisian Revolution.

In 2019, then-Industry and Energy Minister Slim Feriani stated that the state-owned enterprise suffered annual losses of nearly $100 million due to disruptions linked to protests. In Gafsa — one of Tunisia’s poorest regions with the highest unemployment rates — practices such as hiring non-essential workers to ease tensions continue to burden CPG’s finances and hinder efforts to achieve sustainable production growth.

The recent strike, sparked by disputes over holiday bonuses for Eid al-Adha, underscores the fragility of the social environment within Tunisia’s phosphate sector. Beyond effectively implementing ongoing modernization projects, the success of the revival plan largely hinges on whether authorities can restore CPG’s financial health and maintain stable relations with workers and local communities.

Source: ecofinagency

Original article: toutiao.com/article/1865211106045952/

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